CDs Make a Sudden Comeback Thanks to a Surprising New Audience

The digital generation is falling hard for the charm of physical CDs.

Compact discs (CDs) are crawling out of dusty attics and second-hand store bins to take the spotlight once again.

According to Luminate’s 2024 Midyear Music Report, CD sales reached 16.3 million units in the first half of 2024, nipping at the heels of vinyl’s 17.4 million. This narrow gap hints that CDs are quickly catching up to vinyl, which has sold more than CDs in the past two years.

The twist? This comeback is not being driven by nostalgic Baby Boomers or Gen Xers. Instead, a fresh wave of music lovers, who were barely out of diapers when CDs were king, is leading the charge.

The Surprising New Champions of CDs

Who are these unexpected CD fans? None other than members of Generation Z – those born in the late 1990s and early 2000s.

Data from SNEP, the French record industry group, shows that 43% of CD buyers are under 35, with another 20% between 35-44 years old.

And, the trend isn’t just a French quirk, either. Similar patterns are showing up around the globe, though with some differences between countries.

Gen Z’s spending habits give more insight into this trend.

According to Luminate, Gen Z spent 23% more on concerts monthly than the average U.S. music listener. So, their willingness to invest in music experiences seems to extend to physical media as well.

Curiously, some young enthusiasts are purchasing CDs without even owning CD players. Such behavior mirrors a trend observed among vinyl collectors who buy records more for how they look than for listening to them.

How the Music Industry Helped

CD’s resurgence has been fueled in part by high-profile releases from major artists. Fans of stars like Taylor Swift, Olivia Rodrigo, and Beyoncé are eagerly buying CD versions of their new albums.

Case in point: Taylor Swift’s “The Tortured Poets Department” sold an amazing 2.47 million CD copies in the first half of 2024, according to Luminate’s data.

Yet, this CD revival isn’t limited to pop music.

The report shows that rock music accounts for 37.8% of physical album sales, indicating a strong preference for CDs among rock fans.

French rap artists like S-Crew, Laylow, and Vald, along with K-Pop stars like BTS and Blackpink, have also helped make CDs cool again for young listeners.

Nostalgia for an Era They Barely Knew

Many young CD enthusiasts are embracing a format that peaked before they were born or while they were still in diapers.

But this “retromania” isn’t limited to music. It’s part of a bigger trend where Gen Z is romanticizing the aesthetics and culture of the late 1990s and early 2000s, often referred to as the “Y2K” revival.

CDs, with their shiny discs and plastic cases, fit perfectly into this old-but-new vision. For a generation that grew up with all things digital, physical formats like CDs have a certain mystique and tangibility that streaming lacks.

Other Practical Reasons Why Young People Are Choosing CDs

But nostalgia isn’t the only reason for this trend. Young people are choosing CDs for practical reasons too. Here are a few:

• Permanence: Physical CDs give a sense of ‘owning the music’. Many young consumers worry about how streaming services can remove songs overnight due to licensing issues or platform rules. CDs protect against this digital uncertainty.
• Audio Quality: Streaming has improved a lot in sound quality. But some listeners still prefer the full, uncompressed sound of a well-made CD. This is especially true considering how many things can make even lossless streaming sound lossy (like internet connection problems or bugs).
• Affordability: Unlike vinyl, which has become very expensive, CDs are still fairly cheap. This lets young fans build big collections without spending too much. Some even see their CD collections as a way to save money on ever-increasing streaming subscription costs.
• Experience: There’s something to be said for the ritual of CD listening. It encourages a more focused approach to music. So, instead of randomly shuffling through playlists, listeners are more likely to hear albums as complete works of art.
• Tangible Extras: Album artwork, liner notes, and lyrics give physical connections to the music and artists. It’s something digital platforms just can’t match.

Impact on the Music Industry and Artists

CD sales are showing signs of life. But, they’re still a fraction of their historical highs.

In the first half of 2024, CD sales reached 16.3 million units, compared to 20.9 million in all of 2023. This is a far cry from the format’s peak in the early 2000s when annual sales exceeded 700 million units.

Physical sales still play a role in music charts, though. So, artists and labels are taking notice, and some are cleverly capitalizing on this renewed interest.

For one, we’re seeing more limited edition CDs, often with special packaging or extra content that collectors love.

Take Taylor Swift, for instance. She’s been offering deluxe CD versions of her albums at concert merch stands, and fans are eating it up.

Some artists are taking this even further.

For example, French rapper Orelsan took an intriguing approach with his album “Civilisation.” He released a staggering fifteen different CD versions, each with unique artwork for individual tracks.

The Future of CDs in a Streaming-Dominated World

Let’s be clear: streaming is still the 800-pound gorilla in the room. The convenience and vast libraries of streaming services continue to dominate how most people consume music.

While physical sales increased in the first half of 2024, on-demand audio streams still reached 665.8 billion. That’s up 8.0% from the year before!

However, the CD revival suggests that physical media and digital streaming aren’t necessarily at odds. They can coexist as they serve different needs for music fans.

Josh Friedlander, senior VP of research and economics at the Recording Industry Association of America (RIAA), sees this trend as adding to streaming rather than competing with it.

“They may buy the CD, and then they’re also streaming it when they’re [on] their mobile device,” he explains.

Of course, this coexistence isn’t without its challenges.

Fewer CD players in cars and computers could make it harder for CDs to stay popular. There’s also the environmental issue – artists like Billie Eilish have worried about the ecological impact of making multiple physical versions of albums.

Despite these challenges, CDs continue to play a key role in keeping music history alive and giving fans a physical connection to artists.

So, looking ahead, CDs will likely find a place similar to vinyl. They may not be the dominant format, but they could have dedicated fans who appreciate their unique qualities.

All in all, the format’s future will likely depend on how well the music industry can balance the ease of streaming with the appeal of physical media, catering to a new generation of listeners who value both.